The British pound has gone back and forth during the trading session on Monday, forming a somewhat support of candle, as we dance around the 1.30 level. The uptrend line that is part of the overall consolidation that we have seen recently, and now we will have to see whether or not we need to be concerned. If we can break above the 50 day EMA, then I think we will challenge the top of the Friday session, and if we can break above that, the market is likely to continue to go much higher. Keep in mind that the market has been grinding higher for months, but ultimately this is a market that still is dealing with a lot of noise in general.
GBP/USD Video 21.01.20
Sooner or later, we will need to see some type of explosive move. Once we do, then the market will be much easier to trade, as we will continue in whatever direction we break to. Ultimately, I do favor the upside but at this point it’s a bit difficult to imagine a scenario where things are going to be simple or easy. If we do break down from here, the market could go looking towards the 1.2950 level initially for support, but if we break to the upside once we clear the Friday session, the market could go looking towards 1.3250 level. Keep in mind that the market continues to be very choppy in general, so it’s difficult to imagine a situation where you can go “all in” without being nervous.
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This article was originally posted on FX Empire
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